Outcomes of the FATF Plenary, 19-21 February 2025

From 19 to 21 February 2025, the second FATF Plenary meeting took place in Paris, France, under the chairmanship of the current FATF President, Ms Elisa de Anda Madrazo of Mexico. The Plenary was attended by more than 200 delegates from jurisdictions of the FATF Global Network and observers from international organisations. Delegates held discussions to identify measures to address key issues relating to money laundering, terrorist financing and the financing of the proliferation of weapons of mass destruction (WMD).

Following an extensive public consultation, the Plenary agreed to amend the FATF Standards to deliver on one of the key priorities of the Mexican Presidency, namely better supporting the risk-based approach and financial inclusion,

In addition, to ensure the completion of important work to stop the financial flows linked to online child sexual exploitation and to protect children from harm, the organisation will publish an approved report next month.

The Plenary agreed to launch further public consultations on work relating to payment transparency, complex proliferation financing activities and sanctions evasion, in support of the implementation of the changes to the Standards on financial inclusion. The FATF continues to seek the widest possible range of views and perspectives in order to make new contributions.

The FATF removed the Philippines from the list of jurisdictions under increased monitoring following a successful on-site visit, and updated its statement on “high-risk jurisdictions and other monitored jurisdictions”.

The Plenary also welcomed Kenya, newly invited to take part in the Plenary and the FATF Working Groups under the new guest initiative, which aims to enhance inclusiveness and help the FATF better identify regional specificities. In addition to Kenya, the countries taking part in the guest initiative include the Cayman Islands and Senegal, since October 2024.

Furthermore, the suspension of the Russian Federation remains in effect to date.

A view of the FATF Plenary in February 2025. Source: compiled

Jurisdictions under increased monitoring

Jurisdictions under increased monitoring are actively working with the FATF to address strategic deficiencies in their regimes to counter money laundering, terrorist financing and proliferation financing (AML/CFT/CPF). When the FATF places a jurisdiction under increased monitoring, it means the country has committed to implementing an action plan to swiftly resolve the identified strategic deficiencies within agreed timeframes.

At this Plenary, the FATF added the Lao People's Democratic Republic and Nepal to the list of jurisdictions under increased monitoring.

 Jurisdictions no longer subject to increased monitoring

The Plenary announced that the Philippines had been removed from the FATF list of jurisdictions under increased monitoring (the grey list), almost four years after it was placed on the list and subjected to monitoring procedures in June 2021. The Philippines has made positive progress and completed its action plan within the agreed timeframe to address strategic deficiencies in countering money laundering, terrorist financing and proliferation financing.

Nevertheless, the country still needs to continue working with the Asia/Pacific Group on Money Laundering (APG), of which the Philippines is a member, to sustain the improvements in its AML/CFT system. The FATF encourages the Philippines to continue its work to ensure that counter-terrorist financing measures are applied appropriately, in particular the identification and prosecution of WMD proliferation financing cases, without disrupting the legitimate activities of non-profit organisations (NPOs).

Membership issues

The FATF continues to maintain the suspension of the membership of the Russian Federation. Following the statements issued since March 2022, the FATF reiterates that all jurisdictions should be vigilant to current and emerging risks from the circumvention of measures taken against Russia in order to protect the international financial system.

FATF Vice-President (2025-2027)

The Plenary announced that Mr Giles Thomson of the United Kingdom (UK) will become the new FATF Vice-President. He will succeed Mr Jeremy Weil of Canada, who has held the role since 1 July 2023 and will complete his term on 30 June 2025. Mr Thomson is currently Director of the Office of Financial Sanctions Implementation and Economic Crime at HM Treasury and Head of the UK delegation to the FATF, and will serve as FATF Vice-President for two years from 1 July 2025.

Strategic initiatives   

1. Financial inclusion and the risk-based approach

Having gathered more than 140 responses to the public consultation, members agreed to amend the FATF Standards to better support financial inclusion, noting that around 1.4 billion people worldwide still do not have a bank account.

These changes are based on a wide range of input, including from non-profit organisations, banks, payment service providers, insurers, academics, accountants, lawyers and other international organisations.

Recommendation 1 aims to ensure that countries apply a risk-based approach to measures to counter money laundering, terrorist financing and proliferation financing. The changes will encourage financial institutions to apply simplified measures where risks are low, making it easier for people to access financial services.

This builds on extensive work in response to the findings of the 2021 stocktake, in which the FATF highlighted that de-risking, financial exclusion, the undue targeting of non-profit organisations and the curtailment of human rights may occur when jurisdictions do not properly apply the risk-based approach.

2. Detecting and disrupting online child sexual exploitation

The Plenary adopted a landmark report examining how following the money and gathering financial intelligence can help detect, disrupt and investigate the monetisation of online child sexual exploitation.

Drawing on case studies and expertise from the FATF Global Network, the report will help link financial transactions to crimes and enable earlier detection and intervention in cases of live-streamed child sexual abuse and the “sextortion” of children.

The report will be launched at an event in London on 13 March 2025, which will bring together representatives from across the public and private sectors to put the report's findings into practice worldwide.

3. Public consultations

The FATF is developing new guidance on applying the changes to Recommendation 1 to support the risk-based approach and financial inclusion.  This guidance will provide policymakers and supervisors with practical examples to encourage broad adherence to the changes. The FATF welcomes feedback on this guidance so that the public and private sectors can implement the risk-based approach in the best possible way.

The FATF also agreed to consult on potential revisions to its Recommendation 16 on payment transparency, with a view to improving the standard and quality of originator and beneficiary information in payments. This will help achieve greater transparency and security, avoid duplication and promote more efficient compliance processes by financial institutions, while supporting faster and cheaper payments. The FATF is seeking the widest range of views, with the aim of supporting the use of new technologies without undermining measures to combat illicit finance.

In addition, the FATF is seeking input to understand complex proliferation financing schemes and sanctions evasion. The FATF will review information on best practices and challenges in identifying, assessing, understanding and mitigating the risks of proliferation financing. The public consultation will also provide views on how the FATF can support the private sector in meeting its obligations to counter WMD proliferation financing.

Details of the three consultations will be published on the FATF website shortly.

4. Global Network cooperation

Under the Mexican Presidency, the FATF is stepping up action to strengthen the voice and participation of FATF-Style Regional Bodies (FSRBs) in the work of the FATF and to enhance cohesion within the Global Network.

The FATF President continues to build on the initiative launched in October 2024 to encourage guest jurisdictions to participate more actively in the FATF and to promote greater regional representation. This week, Kenya joined the Cayman Islands and Senegal at the Plenary as guest jurisdictions.

The guest initiative aims to broaden the diversity of perspectives and contexts at the FATF from regions around the world where few FATF members are currently present. Invitations to guest jurisdictions are for a period of one year, on a rotating basis.

5. Women in FATF and the Global Network initiative (WFGN)

During the Plenary week, the FATF successfully held an event in support of the development programme for Women in FATF and the Global Network. The FATF discussed further proposals to support women's careers and will launch the second edition of the FATF Mentoring Programme in March 2025.

6. Assessment of technical compliance of “gatekeepers” in relation to corruption

The Plenary affirmed the importance of the FATF's assessment of designated non-financial businesses and professions (DNFBPs), which considers action to apply key aspects of the FATF Recommendations to lawyers, accountants, trust and company service providers and real estate agents. Countries are encouraged to continue addressing their deficiencies.

7. Private Sector Collaborative Forum

Members continued to express support for the FATF's close cooperation with the private sector and civil society to effectively address current and emerging threats to the global financial system.

The FATF's annual Private Sector Collaborative Forum will take place in Mumbai on 25-27 March 2025, bringing together representatives of the financial sector, designated non-financial businesses and professions, academia, FATF members and other stakeholders.

Vu Thu Ha – Centre 81